Impacts of RFID on the supply chain

Résumé du document

RFID (Radio Frequency Identification Technologies) has become very popular and is considered as a major advanced in supply chain management. In fact, RFID is the fastest growing segment of the automatic data capture and identification market. RFID is a technique for electronic labeling and identification of objects using radio waves. RFID tags have both a microchip and an antenna. The microchip permits to store object information such as a unique serial number. The antenna allows the microchip to transmit object information to a reader, which transforms the information on the RFID tag to a format understandable by computers. RFID is used in many sectors: passports, transports payments, products tracking, automotive, animal identification and inventory system. RFID deployment in supply chain management is still in its early life. However, it seems to have a strong potential for improving processes and may fundamentally modify the way of supply chain.

Extraits

[...] The main RFID suppliers propose some priority systems. It results from incompatible frequencies and protocols. It's the case for the transport (road and air). The opened information systems have also stopped the increase of RFID technology because of a lack of homogenisation. - The interferences: Interferences with external waves, water or metal can disturb the system. For example, it's difficult to create a tag for a soda bottle. This limit can be avoided by working on the entire supply chain. [...]

[...] First, the tag has to be incorporated in the item, it's more expensive than bar codes which stick to the support. Then, the system needs interfaces between applications to analyse the information. Finally, the investment in radar, reader, engineering and cabling is heavy. For example, unit cost of tags and the overall cost of RFID implementation are one of the greatest obstacles to RFID adoption in the retail sector Technological problem For the moment, the systems of bar codes and RFID coexist. The domination of the bar codes obliges the supplier to make mixed systems. [...]

[...] RFID deployment in supply chain management is still in its early life. However, it seems to have a strong potential for improving processes and may fundamentally modify the way of supply chain. The aim of this paper is first to have an overview of business application of RFID and then to identify the impacts on supply chain by analysing the advantages and the drawbacks. To introduce this new technology, I will first make a SWOT analysis: Business application of RFID 1. [...]

[...] In fact, RFID is the fastest growing segment of the automatic data capture and identification market. RFID is a technique for electronic labelling and identification of objects using radio waves. RFID tags have both a microchip and an antenna. The microchip permits to store object information such as a unique serial number. The antenna allows the microchip to transmit object information to a reader, which transforms the information on the RFID tag to a format understandable by computers. RFID is used in many sectors: passports, transports payments, products tracking, automotive, animal identification and inventory system. [...]

[...] Impacts of RFID on the supply chain Table of contents Introduction I. Business application of RFID 1. Wal-Mart: the precursor 2. The European distribution speed up with the example of Metro 3. Application in the textile industry 4. Application in the pharmaceutical industry II. Advantages 1. The data storage is revolutionized 2. The product flow is optimized 3. Better productivity and improvement of the stock management 4. Theft and counterfeiting III. [...]